Daiwa Securities : Basic Financial Statements

Daiwa Securities Group Inc.

IFRS Reference

【IFRS Reference】

Quarterly Consolidated

Financial Statements

For the 6 months ended September 30, 2022

The statutory consolidated financial statements of Daiwa Securities Group Inc. filed under Financial Instruments and Exchange Act of Japan etc. are prepared in accordance with Generally Accepted Accounting Principles in Japan (JGAAP). In contrast, the accompanying IFRS-based financial statements are presented for reference only for the purpose of providing useful information for our shareholders and investors, and are not any requirement by Company Act, Financial Instruments and Exchange Act of Japan, nor listing rules of Tokyo Stock Exchange. Please note that there is no direct comparability between the financial statements prepared under different accounting standards.

Daiwa Securities Group Inc.

IFRS Reference

Table of Contents
	Page
Cover
【Quarterly Consolidated Financial Statements】
Quarterly Consolidated Statements of Profit or Loss....................................................................	3
Quarterly Consolidated Statements of Comprehensive Income...................................................	4
Quarterly Consolidated Statements of Financial Position.............................................................	5
Other Information..........................................................................................................................	7

2

Daiwa Securities Group Inc.

IFRS Reference

【Quarterly Consolidated Financial Statements】 Quarterly Consolidated Statements of Profit or Loss

	(Unit：millions of Yen)
FY2021(2Q)	FY2022(2Q)

Operating revenue:

Commission received

Net gain on trading

Net gain(loss) on operational investment securities

160,293	137,512
44,521	34,777
2,934	4,898

Financial revenue	39,295	102,613
Other operating revenue	61,947	101,198
Total operating revenue	308,990	380,998
Financial expenses	(17,082)	(77,868)
Other operating expenses	(32,571)	(65,003)
Net operating revenue	259,337	238,127

Selling, general and administrative expenses

Other profits and losses

Share of net profit from investments accounted for using equity method

(193,387)(198,670)

1,7463,193

5,8584,500

Quarterly profit before income tax	73,554	47,150
Income tax expenses	(18,460)	(12,173)
Quarterly net profit	55,094	34,977
Quarterly net profit attributable to:
Owners of the parent	50,399	30,027
Non-controlling interests	4,695	4,950
		(Unit：Yen)
	FY2021(2Q)	FY2022(2Q)
Quarterly earnings per share
Attributable to owners of the parent:
Basic	33.11	20.27
Diluted	32.90	20.17

3

			Daiwa Securities Group Inc.
			IFRS Reference
Quarterly Consolidated Statements of Comprehensive Income
			(Unit：millions of Yen)
	FY2021(2Q)		FY2022(2Q)
Quarterly net profit	55,094		34,977
Other comprehensive income:

Items that may be reclassified subsequently to profit or loss:

Exchange differences on translating foreign operations Cash flow hedge reserves

Share of other comprehensive income of investments accounted for using equity method

Financial assets measured at FVTOCI

Items that will not be reclassified to profit or loss:

2,307	48,670
(107)	202
3,350	4,817
(5,925)	(664)

Designated financial assets measured at FVTOCI	14,757		(9,912)
Designated financial liabilities measured at FVTPL	(272)		1,044
Other comprehensive income	14,110		44,157
Quarterly comprehensive income	69,204		79,134
Quarterly comprehensive income attributable to:
Owners of the parent	63,911		73,045
Non-controlling interests	5,293		6,089

4

Daiwa Securities Group Inc.

IFRS Reference

Quarterly Consolidated Statements of Financial Position

			(Unit：millions of Yen)
		FY2021	FY2022(2Q)
		March 31, 2022	September 30, 2022
Assets:
Cash and bank deposits	4,603,110	3,971,034
Trading securities and other	5,919,617	8,581,323
Derivative assets	1,656,896	2,139,781
Loans secured by securities	8,040,168	8,893,135
Loans and trade receivables	5,828,846	5,721,240
Operational investment securities	120,812	141,048
Other investments	1,324,952	1,249,981
Other financial assets	1,212,757	1,549,911
Designated financial assets measured at FVTOCI	214,220	190,612
Equity method investments	131,415	141,404
Property and equipment	170,315	177,287
Right-of-use assets	132,585	127,513
Investment property	829,573	821,765
Intangible assets	135,511	136,735
Other assets	249,261	281,702
Current tax assets	11,375	4,797
Deferred tax assets	7,842	8,390
Total assets	30,589,255	34,137,658
Liabilities:
Trading securities and other	2,948,427	3,677,577
Derivative liabilities	1,620,487	2,097,805
Loans payable secured by securities	9,109,587	11,858,844
Trade payables		4,309,127	4,493,306
Deposits for banking business		4,189,105	4,126,220
Deposits from customers		402,231	522,152
Borrowings		3,508,267	2,830,767
Bonds and notes		1,806,912	1,616,786
Lease liabilities		134,105	129,274
Other financial liabilities		494,214	699,348
Provisions		8,579	8,058
Net defined benefit liabilities		44,236	44,458
Other liabilities		78,279	55,429
Current tax liabilities		8,651	7,189
Deferred tax liabilities		53,014	52,975
Total liabilities	28,715,221	32,220,188

5